The real backlash will be when various websites and phone apps stop working.
NF should split the websites between streaming and DVD/BD. DVD will have a long tail but wont need much maintenance. Dedicate specific resources to delivery with minimal updates. Just keep the existing customer base happy. No need to push them to streaming.

Daniel Jacobson, Netflix's director of engineering, posted a notice on the Netflix blog that they will be removing DVD-related features from the Netflix open API. We’re making some changes to the Open API program to support the Netflix focus on international streaming. Later this year, we will ...

Again, NF has over-simplified this setting. It would be much more useful to me if I could set it by device.
I want full blown HD on my PS3 because it is connected to my home theatre. I don't mind that sometimes my ISP can't handle the HD stream because the PS3 adapts by downgrading the quality instead of stopping to buffer. Love the almost instant start too.
My Roku, however, is attached to a smaller TV in the bedroom with only stereo output. I'd like to force it to use 3-dot quality all the time to escape the long startup buffering for HD and re-buffering when the Roku chooses too high of a stream. Although, I haven't seen it do the re-buffering in a while so maybe the Roku went to adaptive too.

Netflix has added the ability to control the quality (and data usage) of your Netflix streaming, helpful if you have a capped bandwidth account or are using a mobile device. Netflix added a similar setting for Canadian subscribers in February when ISP's up north started capping bandwidth. You ca...

The above list is missing Psych: Season 5 and Stargate Universe: Season 2 which both started shipping today but were not included on the RSS feed or the "Releasing This Week" page. It is getting harder to know when my favourite shows are releasing on DVD.
Anybody come across a site like DVDLater that has upcoming DVD releases of TV shows linked to NF?

Click here for the full list of new releases this week. Interesting titles include Biutiful, Passion Play, Mao's Last Dancer, The Green Hornet, Drive Angry, The Dilemma, Swamp People, Cross, Waiting for Forever, The Waiting City, Undertow, A Nightmare in Las Cruces, and Rookie Blue.

Something else to consider is that total consumed is not exactly relevant for a vast structure like the Internet. It is an indicator of what people are using their connection for but not an indication of how much capacity is in use.
Neflix streaming is now big enough that they should be (and maybe already are) in talks with the larger ISPs to move the content into the ISP's network. Much like ISPs often cache commonly accessed image files, NF might create an easily distributable server instance that an ISP could deploy to reduce back-haul bandwidth.

A recent Sandvine study reports that Netflix now accounts for almost 30% of peak Internet Traffic, and Ryan Lawler at NewTeeVee makes an interesting observation about Netflix vs. piracy: According to Sandvine, even when averaged over the entire day, Netflix accounted for 22.2 percent of North A...

Wow! Actual "hacking" on Hacking Netflix.
How odd that NF is only checking what the phone reports itself as. It be interesting to see what it works and doesn't work on. Probably a processor limitation.

Update: DroidMatters has a possible no-hack way to stream Netflix on non-supported Android devices. If you have an unsupported Android phone (or Nook Color!) and want to try Netflix streaming, Reddit user Natemckn posted a possible hack that involves rooting your phone. It doesn't work for ever...

Update: Netflix's Roma De on the Netflix blog: "We are aggressively qualifying phones and look forward to expanding the list of phones on which the Netflix app will be supported. We anticipate that many of these technical challenges will be resolved in the coming months and that we will be able ...

@Matthew Rogers
You are assuming that DNS round robin is the only way to load balance and A/B test. You would probably be right if this was YouTube and you didn't need authentication and encryption. NF servers and CDN servers have to maintain state (keep you authorized) and so once you are assigned to a server (or cluster) then you probably stay there. I'm completely guessing but I am trying to point out that it is possible.
The robustness, size, and complexity of the NF, CDN, and ATT configurations make it difficult for anyone to predict which specific physical and virtual machines that your specific connections would use. Hopefully NF has built in some data logging for when you get 2-dot and what specific machines you were attached to. This is the only way I see them figuring out what the problem is unless ATT is testing out throttling without telling their representatives (no that couldn't happen).

Reader Matthew writes, "Since January I have had nothing but issues with Netflix's streaming quality. All four Netflix playable devices in my house (Roku, LG BD-550, iPod Touch, and computer) have been playing poor quality streams. I have been streaming for two years on my Roku at 4 dot quality ...